If IBM acquires Lotus, it may be years before it earns a respectable return

Article Abstract:

If IBM is successful in its $3.3 billion hostile takeover of Lotus Development Corp, it could take the company years to see a return on investment on the deal. The offer that IBM has proposed is almost twice the value of Lotus' stock and Lotus has also been reporting declining profits for two years. The company reported losses of $17.5 million for its 1st qtr. IBM would have to see an after-tax return of about 15% on its $3 billion deal in order to make the acquisition worth the price and analysts are skeptical that the company can do this. IBM officials are obviously looking at more than immediate profits in its acquisition plans and is planning to make long term profits from sales of Lotus Notes groupware and as a corporate systems integrator and consultant of systems that integrate workgroup software.

Mergers, acquisitions and divestments, International Business Machines Corp., IBM, Lotus Development Corp., LOTS, Company Acquisition Merger

---

Hot Linux market to get an IPO test via profit-free firm; sofware vendor LinuxOne hopes it can ride along on current industry craze

Article Abstract:

LinuxOne Inc. has filed to make an initial public offering, hoping to raise as much as $24.8 million in an offering of 3 million shares. The proposed price has gone up to $8.25 a share, from the $6 to $8 estimated last week.

United States, Systems Software Pkgs, Computer Software Wholesale, Computer and Computer Peripheral Equipment and Software Wholesalers, Computers, peripherals & software, Planning, Wholesale industry, Wholesale trade, Securities, Going public (Securities), Initial public offerings, Software distributors, Red Hat Inc., VA Linux Systems Inc., RHAT, Wholesale software, Wholesale trade management software, LinuxOne Inc.

---

Similar abstracts:

• Abstracts: IBM signs joint marketing agreement in deal with software vendor Vignette. NCR wins data-warehouse contracts with Web firms, cracking new market
• Abstracts: Computer software & services. Computer software and services industry
• Abstracts: Shades of Soros maybe, but it could be a profitable each-way bet: 'lower risk' hedge funds are emerging in an increasingly uncertain investment climate
• Abstracts: Technology management and collaboration profile: virtual companies and industrial platforms in the high-tech biotechnology industries
• Abstracts: Online music: is is time to rewind or fast forward? Senate committee criticizes record industry, Napster for obstructing process

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.